Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Dec. 08, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Advance Auto Parts, Inc. (NYSE: AAP) investors that a lawsuit filed on behalf of investors that purchased AAP securities between Nov. 16, 2022 and May 30, 2023, inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The complaint alleges that Advance Auto Parts and its defendants made false and misleading statements, failing to disclose several critical issues. These include misrepresenting the effectiveness of their strategic pricing initiative and the impact of price reductions, concealing the negative consequences of this initiative, providing an overly optimistic view of the company's operations, and creating a false impression that inflation and macroeconomic factors had minimal effects on their margins.
The truth emerged on May 31, 2023, when the company reported disappointing Q1 2023 financial results. Despite previous guidance for improved operating margins in 2023, it was revealed that the company's operating margin had plummeted to 2.6% in Q1, compared to 6% in the previous year. This decline was attributed to the strategic pricing program.
Furthermore, Advance Auto Parts provided a bleak outlook, particularly regarding their anticipated earnings per share (EPS). Initially, they expected a full-year EPS of $10.20 to $11.20, but due to reduced sales and strained margins, they revised it to only $6.00 to $6.50.
As profits dwindled, the company also slashed its quarterly dividend by 83%, reducing it from $1.50 to $0.25.
In response to this news, Advance Auto Parts' stock plummeted by $39.31 per share, representing a staggering 35% decline in a single trading day.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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